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Earnings Estimates Moving Higher for Gates Industrial (GTES): Time to Buy?
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Gates Industrial (GTES - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this manufacturer of power transmission and fluid power systems, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Gates Industrial, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The earnings estimate of $0.29 per share for the current quarter represents a change of +16% from the number reported a year ago.
The Zacks Consensus Estimate for Gates Industrial has increased 8% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $1.26 per share, representing a year-over-year change of +10.53%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Gates Industrial. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 7.21%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Gates Industrial currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Gates Industrial because of its solid estimate revisions, as evident from the stock's 7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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Earnings Estimates Moving Higher for Gates Industrial (GTES): Time to Buy?
Gates Industrial (GTES - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this manufacturer of power transmission and fluid power systems, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Gates Industrial, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The earnings estimate of $0.29 per share for the current quarter represents a change of +16% from the number reported a year ago.
The Zacks Consensus Estimate for Gates Industrial has increased 8% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $1.26 per share, representing a year-over-year change of +10.53%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Gates Industrial. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 7.21%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Gates Industrial currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Gates Industrial because of its solid estimate revisions, as evident from the stock's 7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.